BENTEK’s Southeast/Gulf Observerreports that continued Northeast natural gas production growth is putting significant pressure on Southeast outflows through the Ohio Valley region. The six pipeline systems that move gas through the Ohio Valley from the Southeast to major demand centers in the Northeast are flowing substantially less gas. Year-over-year natural gas throughput on these pipelines has declined 36% or 1.9 Bcf/d compared to 2011. Total Ohio Valley flows in March 2012 averaged 3 Bcf/d compared to an average of 5.4 Bcf/d posted for March 2011, a decrease of 45%.

A number of Southeast region market changes have taken place to absorb this displaced supply. Southeast gas demand from power is increasing, and more gas is flowing to the Midcontinent. Texas flows to the Southeast have dropped 1 Bcf/d so far this year. Southeast storage injections also have increased, but this will only provide a temporary solution if Northeast natural gas production growth continues.